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I am self employeed single lady. I am in the process of selling my home and will have about 125k cash after the sale. I will then purchase a home for about 250k and put down 100k. My FICO is 780, what is my best way to go stated or no doc? what is the difference? Will I still get the best rate?

No doc means what it sounds like, no documents. They do not ask for any income, assets, work history nor does the bank investigate any of those items. These are almost impossible to find now... the only options are private equity/hard money lenders.

Stated income means you "state" the income you make on the application, but the lender does not verify it. Used to be anyone could do this (even cashiers at Disneyland claiming they made $90,000 a year as the story goes).

Now for stated income there is an option if an automated underwriting system (AUS), approve you with what is called "reduced documentation". You need excellent credit, assets, down payment and employment history. You have to show the proof of employment and the assets and where they came from (sale of your current home). The income also has to be "reasonable" for the employment you have.

It is tough, but with the information you provided may be possible. If you qualify, the rate will be the same as if you were documenting income. This is because its the same program, you just end up being qualified enough to not prove all the items (W2, paystubs) that clients with 5-10% down or lower credit might have to.

Of course, it is a bif IF and make sure the loan officer understands your situation, underwriting systems and guidelines. The system could ask for items that make the situation impossible, so always be cautious and don't assume a "pre-qualification" or even a "pre-approval" is a sure thing.

The subject property is a 3 year old SFR that conservatively appraises at $400K. The existing 2+ yr old 1st is about $170K and there are no other liens on the property. Property owner has long term credit with current score of 830, no debt other than 1st mortgage, about $40K in bank, and semi-liquids in excess of $200K (antiques, gold, silver, diamonds). Has strong prior work history, but no paychecks during the last 2-3 years due to "trying out" self-funded retirement. Property owner wants to pull out up to $100K of equity, which would result in a 68% LTV, and wants 30 year fixed. Are any lenders making such loans and if so, any suggestions re how/where to find them?

Stated loans are not hard to find, but when you dont have any income to prove, it makes it quite hard to show anything. It sounds like they needed a good old no doc loan, but those are gone. Even with a stated loan, the lender usually wants to verify at least that the borrower has a job somewhere. Good luck with that one though, it might be able to get done

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